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Projecting the long-term financial status of the Canada Pension Plan, Old Age Security, Canada Student Loans and federal sector workplace pension and insurance plans requires the Office of the Chief Actuary (OCA) to assess historical, present and future trends in the areas of demography and economics. Given these concerns and the mandate of the OCA, our Office is continuously involved in preparing various experience studies and research covering a wide range of social security, demographic and economic issues that may affect the financial status of these plans.

Some of these studies also serve to support policymakers in developing and analyzing various policy options in the context of plan reforms. The information presented in these studies could benefit private sector organizations that evaluate social security or private pension plan schemes.

To keep the general public informed, the OCA is committed to prompt disclosure of information through our periodic statutory actuarial reports and by making available the results of our special studies on the many aspects of these programs.

The proposed additional Canada Pension Plan regulations aim to ensure that the enhanced portion of the Plan is appropriately funded over time while respecting intergenerational equity and financing objectives of the enhancement.

In 2013, beneficiaries with low income live on average about 2 and half years less than those with higher income. The differential in life expectancies at age 65 by level of income has shown little variability over the last 15 years.

At age 65, federal public servants are expected to live approximately one year longer than the general Canadian population. At the same time, they are expected to live as long as members of Canadian private sector pension plans, and shorter lives than members of Canadian public sector pension plans.

The inclusion of future contributions and benefits with respect to both current and future contributors in the assessment of the Canada Pension Plan financial status through actuarial balance sheets shows that the Plan is able to meet its financial obligations and is sustainable over the long term.

Canadians have made significant gains in longevity over the past century. Future gains in longevity are projected to continue, with many Canadians expected to live beyond age 90 on average in the future. However, living to 100 will continue to be a challenge for most.

Over the last decade, life expectancy at age 65 has experienced the largest ever increase since the Old Age Security Program’s inception with life expectancy at age 65 increasing by about two years to reach 20 years in 2010.

If the CPP’s financial sustainability is to be measured based on its actuarial balance sheet, it should be done so on an open group basis that reflects the partially funded nature of the Plan, that is, its reliance on both future contributions and invested assets as means of financing its future expenditures.

The study concludes that the inclusion of future contributions and benefits from both current and future contributors in the assessment of the Plan's funded status shows that the Plan is able to meet its financial obligations and sustainable over the 75-year projection period.

More Canadians are expected to receive pension benefits from the Canada Pension Plan (CPP) for a longer period of time. The study’s findings also underscore a correlation between the level of CPP income and a beneficiary’s life expectancy; the higher the CPP retirement pension, the higher the beneficiary’s life expectancy.

The actuarial study concludes that the current partial-funding model of the Canada Pension Plan (CPP) is robust and appropriate for the purpose of contributing to the long-term financial sustainability of the Plan.